A Message to Students and Parents About Financing a ...

[Pages:12]A Message to Students and Parents About Financing a Clarkson Education

We understand that financial aid can be confusing for parents and students. Inside this packet, you will find information to help you choose which financial aid options will best suit your needs to finance your Clarkson education. This packet contains information and instructions relating to several financing options.

Enclosed you will find information about Clarkson University's Payment Plan, the William D. Ford Federal Direct Student Loan Program (Federal Direct), the William D. Ford Federal Direct Parent Loan for Undergraduate Students (Federal Direct PLUS), and alternative student loans.

The best way to limit your debt is to consider the interest-free monthly payment option offered by the Clarkson University Payment Plan. If the difference between your annual educational costs and available financial aid is greater than what you are able to pay on a monthly basis, there are several loan options that can be used to make up the difference. Financing all or some of your educational costs using the Clarkson University Payment Plan can result in limiting the amount borrowed, including interest charges, and maximizing the interest-free payment you make each month.

We ask that you read the enclosed information concerning each program, consider the amount of money that you can pay toward your educational costs and, if you believe that additional financing is required, follow the instructions and complete the application(s) that best meet(s) your needs. For your convenience, we have included instructions for finalizing a Federal Direct Student Loan, instructions for obtaining a Federal Direct Parent PLUS loan, and a University Payment Plan Application.

Information contained is accurate as of November 2018. Each year, as Congress finalizes the FY2019 budget, including sequestration, any information pertaining to Federal Student Aid is subject to change. We hope the information contained in this packet is helpful to you and your family. Please contact our office if you have any questions regarding financing options or if we may be of further assistance.

Clarkson University, Potsdam, NY 13699 New Students: 800-527-6577/315-268-6480 u Fax: 315-268-7647 u Email: admissions@clarkson.edu

Continuing Students: 315-268-6451 u Fax: 315-268-6452 u Email: sas@clarkson.edu clarkson.edu

Equal Opportunity Policy: Clarkson University does not discriminate on the basis of race, gender, color, creed, religion, national origin, age, disability, sexual orientation, veteran or marital status in provision of educational opportunity or employment opportunities and benefits.

(Revised 10/2018)

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A Strategy for Financing Your Educational Expenses

There are many resources available to assist you in financing your Clarkson education. This packet will help you choose the options that best suit your needs.

Overall, if the Federal Direct Student Loan is included as part of your financial aid package, it offers the best repayment terms, deferment options and borrower benefits.

The balance left after this financial aid award is the amount that you will need for your educational expenses at Clarkson. You may pay the balance in full to Clarkson when you receive your actual invoice, or you may consider the Clarkson University Payment Plan.

What is the best way to finance your education?

The Clarkson University Payment Plan is recommended to help budget payment of your educational expenses and limit your debt.

Use the Expense Planner on the following page to determine the difference between your costs and financial aid.

Attractive Loans Complement Your Payment Strategy

There are also a variety of loans available from the federal government and other lenders that may assist you in strategically paying the cost of a Clarkson education. Using the best combination of these resources with current income and savings can help establish or maintain a good credit rating and minimize costs. We hope you find the strategies and information provided to be helpful in determining what works best for you.

Paying Interest-Free Limits Debt

The Clarkson University Payment Plan allows you to spread your balance out up to six months for each term for a small fee. There is no interest charged on the plan. With this option, you have the freedom to use your money to earn your own interest or investment income, while you pay in installments over the course of the year. For only $60 per year, spreading the balance out interest free up to 12 months is an option that pays for itself.

Highlights to the Clarkson University Payment Plan

? Interest-free repayment ? Participation in the payment plan is extended to

anyone with a U.S. address. This includes international students, provided they have a U.S. address. ? A minimum balance of $1,000 is required to participate in the Payment Plan, but the amount can be as much as the total direct costs minus financial aid. Direct costs include tuition, fees, housing and meals.

If you find that these payments are too high, consider combining the interest-free payments that fit your monthly budget requirements with a low interest Federal Direct Student Loan, Federal Direct Parent PLUS Loan and/or an alternative student loan.

If borrowing becomes necessary, we have provided information on certain loan programs that may meet the needs of your family. The following pages detail the loan terms, eligibility requirements and application procedures for these options.

We hope that you seriously consider the advantages to paying off some or all of your balances interest free as you go. This strategy is the most effective means to limit your debt.

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Your Expense Planner

1. Enter your estimated expenses.

Tuition Required Fees Housing Meals **Knight Card Total Estimated Expenses

$__________________ + $__________________ + $__________________ + $__________________ + $__________________ = $__________________

2. Enter your financial assistance. Use amounts provided from your

award notice and do not include work-study eligibility.

Federal Grants (Pell & SEOG)

+ $__________________

NYS TAP or other state awards

+ $__________________

Clarkson Scholarships/Grants

+ $__________________

Outside Scholarships/Grants

+ $__________________

Federal Direct Student Loan

+ $__________________

Federal Direct PLUS Loan

+ $__________________

Other Loans

+ $__________________

Total Financial Assistance

= $__________________

3. Subtract your Total Financial Assistance (do not include work study)

from your Total Estimated Expenses to arrive at your Annual Amount.

Enter this amount below.

Your Annual Amount

= $__________________

Number of monthly payments (May-April) ? 12

Your Monthly Payment

= $__________________

Please remember that in addition to the charges listed above, students will also need to purchase books and supplies and meet other expenses, such as travel costs, throughout the year. These expenses are not eligible to be included in the Clarkson University Payment Plan.

**A $500 charge will be added to your account each semester for the Knight Card. The Knight Card is a prepaid declining balance account that can be used to make purchases on- and off-campus. If you are not interested in the Knight Card, you may opt out.

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How to Join the Clarkson University Payment Plan (PP)

? Complete the Payment Plan Application by July 6, 2019, to participate for the fall term.

? Send the $60 nonrefundable application fee with your completed application.

Once we have received the completed application, you will be sent a summary that will include your estimated charges, financial aid, number of payments, and the monthly amount along with coupons for the Fall 2019 term based on your calculations on the application. Spring 2020 term coupons will be sent prior to the November due date.

Monthly invoices will be mailed to the student's home address. They will reflect any miscellaneous charges (i.e. parking fines, ID replacement, dorm damage), not calculated in the Payment Plan. These additional charges must be paid in full by the due date on the invoice in addition to your normal Payment Plan payment, which is due on the 1st of each month or the next business day.

General Information

Participation in the Payment Plan is extended to any student with a U.S. address. The applicant determines the amount to be financed. The maximum can be your total charges (less anticipated financial aid) and the minimum is $1,000 a semester. If you have not received your financial aid information for the academic year at this time, you may use estimates based on your previous year's aid. Keep in mind that this is an estimate and most likely will change. Please note that your financial aid is dependent upon academic standing, financial need, and budget availability. The applicant should compare the estimates placed on this application to the actual charges and credits on the monthly invoice. Invoices will be mailed to the attention of the student at the billing address on file in the Student Administrative Services Office.

Clarkson University reserves the right to review all applications for acceptance into the Payment Plan based upon previous payment history and information provided on the application. A continuing student's prior term balance MUST be paid in full before an application will be processed.

Completing the Application

The application must be completed and signed by the person who is financially responsible for payment. To determine the charges/balance, use the information on your Financial Aid Notification. Please note, charges and credits, unless otherwise noted, should be divided into two equal amounts for each term.

Responsible Person(s)

The financially responsible person(s) agree to pay the debt identified and incurred on the student's account although they may not personally receive any property and/or services. They may be sued for payment although the person who received or has received the property and/or services is able to pay.

Joining the Payment Plan

Completed applications must be received by July 6, 2019, to participate for the fall term. If you submit the initial application applying for both terms before the deadline date, you will be automatically enrolled for the spring term as long as there is no outstanding balance on the account from any prior term(s). Payments are due on the 1st of each month or the next business day.

If the Fall 2019 completed application and fee is received at Clarkson by:

April 6........................................ 6 payments due 5/1-10/1

Between 4/9-5/4....................... 5 payments due 6/1-10/1

Between 5/7-6/1....................... 4 payments due 7/1-10/1

Between 6/4-7/6....................... 3 payments due 8/1-10/1

July 9 and after ....................... must pay balance in full.

If the Spring 2020 completed application and fee is received at Clarkson by:

October 5................................... 6 payments due 11/1-4/1

Between 10/8-11/9................... 5 payments due 12/1-4/1

November 12 and after........... must pay balance in full.

Payment Options

Monthly checks should be made payable to Clarkson University PP. We do not accept postdated checks. There will be a $20 charge for any checks returned to us by the bank.

ePayment

The ePayment feature allows students to make payments on their student account by electronic bank transfer from a checking or savings account (ACH) or by a credit card (MasterCard, Discover and Visa). The credit card option does have a convenience fee charge. Students can view the link on their Student Service Center or through the SAS website at internal.clarkson. edu/sas/student_accounts/pay.bill.html. Payments are made through a secure payment website administered by Educational Computer Systems Inc. (ECSI).

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Payment Plan Application (Please type or print clearly and complete all information)

Financially responsible person's information.

Name____________________________________________________Email_____________________________________________ Address___________________________________________________________________________________________________ Home Phone (_________)____________________________________ Work Phone (________)______________________________ Financially Responsible Person's Signature________________________________________________________________________

Student Information

Student's Name____________________________________________ Student Number___________________________________________

_Calculation of Agreement The responsible person should compare the estimates placed on this application to the actual charges and credits on the invoice.

Student Status: o Undergraduate o Graduate

Requesting Plan For: o Fall and Spring o Fall Only o Spring Only

Federal Direct Student Loan Estimated Amounts by Term

LEVEL

Fall Spring

Freshman

$1,732 $1,732

Sophomore

$2,227 $2,227

Junior and Senior

$2,721 $2,721

Additional unsubsidized $990 $990

By signing below I am authorizing Student Administrative Services to release financial records pertaining to my student account and financial aid to the financially responsible person indicated above. This authorization remains in effect while I am enrolled at Clarkson University. I understand that I may terminate this authorization at any time by notifying Student Administrative Services in writing.

Student Signature___________________________________________________

ESTIMATED FALL CHARGES:

Tuition

__________________

Required Fees

__________________

Housing

__________________

Meals

__________________

Knight Card*

__________________

TOTAL

__________________

ESTIMATED SPRING CHARGES: Tuition Required Fees Housing Meals Knight Card* TOTAL

__________________ __________________ __________________ __________________ __________________ __________________

*KNIGHT CARD ? Participation in the Knight Card program is optional. For more information, go to internal.clarkson.edu/sas/student_accounts/ knightcard/index.html.

ESTIMATED FALL CREDITS:

NYS TAP or other state awards __________________

Federal Grants (Pell, SEOG)

_________________

Outside Scholarships/Grants

__________________

Clarkson Scholarships/Grants __________________

Federal Direct Student Loan (total) __________________

Clarkson Loan

__________________

Other Student Loans

__________________

Federal Direct Parent PLUS Loan __________________

Other

__________________

TOTAL

__________________

ESTIMATED SPRING CREDITS:

NYS TAP or other state awards __________________

Federal Grants (Pell, SEOG)

_________________

Outside Scholarships/Grants

__________________

Clarkson Scholarships/Grants __________________

Federal Direct Student Loan (total) __________________

Clarkson Loan

__________________

Other Student Loans

__________________

Federal Direct Parent PLUS Loan __________________

Other

__________________

TOTAL

__________________

(Federal Work-Study or University Work Program is not applied toward the term charges)

Total Fall Charges Less Fall Credits Fall Balance (pay May-Oct.)

_________________ _ _________________ _ _________________ _

Total Spring Charges Less Spring Credits Spring Balance (pay Nov.-April)

_________________ _________________ _________________

Please enclose the nonrefundable application fee of $60 made payable to Clarkson University PP. Retain a copy of this application for your records. Any applications received without the $60 fee will not be processed.

Return your application and $60 fee to:

Student Administrative Services, Clarkson University

Box 5548, 8 Clarkson Avenue, Potsdam, NY 13699

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Payment Plan Terms and Conditions

The following statement constitutes the terms and conditions of the Clarkson University Payment Plan (PP). Participants in the Clarkson University Payment Plan pay all tuition, fees, housing and meals in monthly payments. The fall payment plan runs from May 1 ? October 1 and the spring payment plan runs from November 1 ? April 1.

1. The PP permits payment of all tuition, fees, housing and meals in monthly installments instead of a lump sum at, or prior to, check-in. The charges for each term are paid in monthly installments, each of which shall be a portion of the total amount payable for the term. These charges, however, are subject to adjustment as set forth in the following paragraphs.

5. The University may refuse to register and any subsequent participation in the PP for any student for whom all payments due have not been paid. The University may withhold diplomas, transcripts and future registration from any student for whom all tuition, fees and other charges have not been paid by the final due date for each term. Subsequent participation will also be denied to anyone who knowingly misrepresents information on his/her application. In the event this agreement is referred to an attorney for collection, the student shall pay attorney fees, reasonable collection costs and charges necessary for the collection of any unpaid amount.

2. The applicant's estimate is based on the amount payable under the PP for each term. Where actual charges are not determined, average or estimated charges have been used. The amount to be financed for each term cannot include any prior semester balance. Any charges above and beyond the original PP amount must be paid with the monthly invoice that is sent to the student's billing address.

3. The debtor shall pay monthly installments in accordance with the schedule set forth by the University to equal the total amount payable with respect to the student's account. All payments must be made in U.S. funds.

6. In the event the student withdraws from the University prior to registration, payments made under the PP will be refunded to the student after all outstanding financial obligations have been met. Refunds will not be given until the University has received official notification of the student's withdrawal.

7. Please allow ample time for postal delivery when you mail your payment. If your plan becomes two months delinquent, your plan will be cancelled.

8. The minimum PP amount that may be financed will be $1,000 per term.

4. The first installment for the fall term is due by May 1, and the remaining payments are due on the first day of each succeeding month. The first installment for the spring term is due November 1, and the remaining payments will be due on the first day of each succeeding month. The number of monthly payments will be determined by the process date of the application.

This agreement is subject to and subordinate to other documents signed involving a contractual relationship with Clarkson University. If any portion of this document shall be held to be inconsistent with those documents, or illegal, such portions of this agreement shall be void, but all remaining provisions shall remain in full force and effect.

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Loan Comparison Quick Reference 2019-2020

The following pages contain information about applying for various educational loans. Use this comparison chart as a quick, convenient reference guide to the features, terms and repayment details for Direct Student Loans, PLUS and alternative loans. Direct loan interest rates are fixed and loans for each year may have new rates.

Federal Direct Loans do not automatically renew each aid year. You must file a FAFSA annually.

Graduate Direct Loans currently have different interest rates.

Federal Direct Undergrad Student Subsidized Loan

Federal Direct Undergrad Student Unsubsidized Loan

Federal Direct Parent PLUS Loan

Alternative Loan

Currently 5.05% fixed

Currently 5.05% fixed

Currently 7.60% fixed

Variable and fixed, varies by lender

No credit check

No credit check

Must be credit worthy Must be credit worthy

Only student loan

Only student

Only parent

Student loan

borrower

loan borrower

borrower

borrower

responsible for

responsible for

responsible for

responsible.

repayment, no

repayment, no

repayment, no

Most lenders will

cosigner needed.

cosigner needed.

student

require a credit-

responsibility.

worthy co-signer.

Loan Limits

Loan Limits

Loan Limits

Varies by Lender

Death/Disability

Death/Disability

Death/Disability

Some lenders offer

benefit

benefit

benefit

Death/Disability

Benefit, varies by

lender.

Deferment /

Deferment /

Deferment /

Possible

Forbearance

Forbearance

Forbearance

Deferment /

eligibility

eligibility

eligibility

Forbearance

eligibility

Federally guaranteed

Federally guaranteed

Federally guaranteed

Not Federally guaranteed

Can be consolidated with other federal guaranteed loans through federal guarantee agency

Can be consolidated with other federal guaranteed loans through federal guarantee agency

Can be consolidated with other federal guaranteed loans through federal guarantee agency

Cannot be consolidated with other federal guaranteed loans through federal guarantee agency

Generally, no interest is charged on subsidized loans while you are in school at least half time, during the grace period and during deferment periods.

Interest is

Interest is

Interest is

charged to your

charged to your

charged to your

loan from the

loan from the

loan from the

time the loan is

time the loan is

time the loan is

disbursed to the

disbursed to the

disbursed.

school. You can

school.

make payments

or capitalize

(defer) interest

until leaving school.

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Federal Direct Student Loan Program -- The First Choice for Students

Subsidized

Unsubsidized

A subsidized loan is based on financial need. In general, the federal government will pay the interest on the loan while you are enrolled at least half time in school, during the grace period, and during deferment periods.

An unsubsidized loan is not based on financial need. You must either pay the interest monthly/quarterly, or have the interest capitalized (added to the principal loan amount). Payments on both the interest and principal must begin six months after the student graduates, leaves school or drops below half-time enrollment.

The following are the federally set limits on Federal Direct Student Loan amounts based on the student's class standing (number of credit hours earned) and at least half-time enrollment.

Additional Unsubsidized

Class

Earned Hours

Dependent Student Independent Student Loan -- both

Year Loan Limit Year Loan Limit

Year Loan Limit

dependent & independent

Freshman 0-23 $3,500 $7,500 $2,000

Sophomore 24-53 4,500 8,500 2,000

Junior 54-83 5,500 10,500 2,000

Senior 84+ 5,500 10,500 2,000

Disbursements

There are two disbursements per year, usually at the beginning of each term. Disbursements of these funds will be done automatically into the student's account when all required documentation is received, the U.S. Department of Education approves the loan, and the student has accepted the federal loan(s), completed the federally mandated entrance counseling requirement and has a signed Master Promissory Note (MPN) on file.

Fees

For loans first disbursed 10/1/18 - 9/30/19, the federal government charges a loan fee of 1.062%. The amount disbursed to your student account will reflect the deduction of this fee from your loan amount.

Interest

For undergraduates, the federal government pays the interest during your in-school and deferment periods for subsidized borrowers. Since interest accrues from the disbursement date on unsubsidized loans, it is highly recommended that borrowers contact their servicer to make payments of this interest while enrolled. Unpaid interest is capitalized at the end of the grace period.

Interest Rates for Undergraduate Students

Currently, the interest rate on both subsidized and unsubsidized federal direct loans is 5.05% fixed. This is the rate for loans disbursed between July 1, 2018June 30, 2019.

Grace Period

Federal Direct Student Loan borrowers are not required to make repayment of principal during the six-month period that occurs after graduating, withdrawing or dropping below half-time enrollment.

Term

Repayment normally may extend up to 10 years; flexible extended repayment plans may be available. A minimum payment of $50 per month is required while in repayment.

Repayment

Repayment begins after the grace period. It may be delayed by deferment options available to borrowers.

Maximum Eligibility Period: You may not receive Direct Subsidized Loans for more than 150% of the published

length of your program. Additional information at: studentaid.sa/types/loans/ subsidized-unsubsidized#eligibility-time-limit

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